Yarn v3 workspaces with nodeLinker: node-modules doesn't create node_modules/ and can't start packages

Question

Even though I have nodeLinker: node-modules in my yarnrc.yml, it still doesn't create the node_modules folder. It still creates the .pnp.cjs and .pnp.loader.mjs files and the .yarn folder. According to the yarn workspaces docs, the node_modules folder is necessary to use workspaces.

When I try to run yarn start in one of my individual package directories it says Usage Error: Couldn't find the node_modules state file - running an install might help (findPackageLocation). It says the same thing when I run yarn workspace package-b start.

I'm using yarn v3.3.1, and node v19.2.0.

Here's my directory structure:

root
|- package.json
|- yarnrc.yaml
|- package-a
   |- package.json
   |- index.ts
|- package-b
   |- package.json
   |- index.ts

Here's my root package.json:

{
  "name": "my-workspace",
  "private": true,
  "workspaces": [
    "package-a",
    "package-b"
  ]
}

package-a package.json:

{
  "name": "package-a",
  "version": "1.0.0",
  "private": true,
  "scripts": {
    "start": "microbundle-crl watch --no-compress --format modern,cjs",
    ...
  },
  "dependencies": {
    "cross-env": "5.0.5"
  }
}

package-b package.json:

{
  "name": "package-a",
  "version": "1.0.0",
  "private": true,
  "scripts": {
    "start": "react-scripts start",
    ...
  },
  "dependencies": {
    "cross-env": "5.0.5",
    "package-a": "1.0.0"
  }
}

index.ts in package-a

export const MY_CONSTANT = 5;

index.ts in package-b

import * as PackageA from 'package-a';
console.log(PackageA);

My root yarnrc.yml:

nodeLinker: node-modules

The only way it works is if I yarn install; yarn start in package-a, then yarn install; yarn start in package-b. This creates the node_modules/ folder in both packages.

Expected: Running yarn install and yarn workspace package-b start would have successfully run package-b.